Sterling suddenly dropped - hitting its lowest level since mid-1985 - before bouncing back, with the sudden dip coming as UK business confidence rebounded to levels not seen since the July vote to leave the European Union.

COMING OVER EIRE?

FEELING BLUE

But others blamed human error for the crash, with IG Markets' analyst Angus Nicholson saying "it looks like it was an algorithm-driven flash crash", saying: "given low volumes in the Asian session, it would have forced other algorithms to join in and magnify the fall".

But despite the short-lived drop, businesses confidence has been revealed to have jumped to levels not seen since before the Brexit vote, a new survey has revealed.

The latest UK Economic Index run by YouGov and the Centre for Economics and Business Research (CEBR) showed that business confidence rose to 112.4 last month, after dropping to 105.0 in July and 109.7 in August.

Numbers above 100 indicate positive business outlook.

The survey, which polled more than 500 business leaders between September 15 to 23, also showed that 44% of businesses were now optimistic about the UK's economic prospects over the next 12 months, compared with 35% in August.

The pound has bounced up and down in the markets after British PM Theresa May's announcement that Brexit would occur by 2019

Scott Corfe, a director at the CEBR, said: "The panic that gripped businesses in the aftermath of the referendum has subsided and they are now much more level-headed and optimistic about the future of both their own organisations and the UK's economy in general."

The figures echo positive data in the latest Markit/CIPS services purchasing managers' index (PMI) released on Wednesday, which showed a better-than-expected performance in September, providing further evidence that the sector was recovering from a shock contraction after the Brexit vote.

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